THE INSTORE JEWELERS Confidence Index plunged to a record low in early April as the coronavirus pandemic brought the economy to a near standstill.
The index, which is based on jewelers’ short-term outlooks and their inventory orders, plummeted to just 3.4 as cities around the country instituted lockdowns and social distancing protocols. Note that previously, the JCI had never fallen below 43 in the four years we’ve been conducting the survey. Readings below 50 points signal that jewelers are more bearish than bullish about their business prospects.
The JCI fell in tandem with jewelers’ sales numbers. Half of our Brain Squad participants reported their revenue had dropped 25 percent or more in March compared with the same month in 2019, while a further 21 percent said their sales were down to a lesser degree. Only 18 percent of the jewelers reported sales growth.
Looking more deeply into the JCI data, an overwhelming but not surprising 87 percent of the respondents said they felt the outlook for their stores had deteriorated, while 82 percent had cut back on their inventory orders.
“In my (Midwestern) community we are going to be locked down for 14 days by the powers-that-be. So no shoppers, no repairs, no money coming in for a month now … and (the virus) hasn’t even hit us yet,” said Bill Longnecker, the owner of Longnecker Jewelry in McCook, NE. “We have had two months to prepare for it, our hospitals are ready and equipped with the tools to handle this virus when it gets here. But this hasn’t stopped our economy from collapsing simply from panic and fear.”
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The JCI data was drawn from INSTORE’s April Brain Squad survey, which was answered by 239 independent jewelers in North America in the first two weeks of April.
What’s the Brain Squad?
If you’re the owner or top manager of a U.S. jewelry store, you’re invited to join the INSTORE Brain Squad. By taking one five-minute quiz a month, you can get a free t-shirt, be featured prominently in this magazine, and make your voice heard on key issues affecting the jewelry industry. Good deal, right? Sign up here.
Family Legacy, New Chapter: How Wilkerson Turns 89 Years of History Into Future Success
After 89 years of serving the Albany community, Harold Finkle Your Jeweler faced a pivotal decision. For third-generation owner Justin Finkle, the demanding hours of running a small business were taking precious time away from his young family. "After 23 years, I decided this was the time for me," Finkle explains. But closing a business with nearly nine decades of inventory and customer relationships isn't something easily managed alone.
Wilkerson's comprehensive approach transformed this challenging transition into a remarkable success story. Their strategic planning handled everything from advertising and social media to inventory management and staffing — elements that would overwhelm most jewelers attempting to navigate a closing sale independently.
The results speak volumes. "Wilkerson gave us three different tiers of potential goals," Finkle notes. "We've reached that third tier, that highest goal already, and we still have two weeks left of the sale." The partnership didn't just meet financial objectives—it exceeded them ahead of schedule.
